Marijuana Company of America Announces Reverse Stock Split of Common Stock
ESCONDIDO, Calif., July 03, 2019 (GLOBE NEWSWIRE) -- via NetworkWire – MARIJUANA COMPANY OF AMERICA INC. (“MCOA” or the “Company”) (OTCQB: MCOA), an innovative hemp and cannabis corporation, today announced that the Company’s Board of Directors and Stockholders have approved a reverse stock split of its issued and outstanding common stock at a ratio of 1-for-60. The decision was made at a Special Meeting of Stockholders held on July 1, 2019.
The reverse stock split is intended to give Marijuana Company of America greater flexibility in considering and planning for future potential business needs, and to increase the per-share trading price of its common stock to enable the Company to satisfy the minimum price requirement for continued listing on the OTCQB. Pursuant to the Amended Certificate to MCOA’s Certificate of Incorporation, the reverse stock split will be effective on July 31, 2019, at 12:01 a.m. ET. Subject to approval of the corporate action by FINRA, MCOA expects that upon the opening of trading on Aug. 1, 2019, its common stock will trade on a split-adjusted basis with a new CUSIP number under current trading symbol “MCOA.”
The reverse stock split affects all issued and outstanding shares of MCOA common stock. The par value of MCOA common stock will remain unchanged at $0.001 per share after the reverse stock split. The reverse stock split affects all stockholders uniformly and will not alter any stockholder’s percentage interest in MCOA’s equity. No fractional shares will be issued in connection with the reverse split. Stockholders, who would otherwise be entitled to receive a fractional share, will instead receive one additional share as determined in good faith by MCOA’s Board of Directors.
Pacific Stock Transfer Company is acting as the exchange agent and transfer agent for the reverse stock split. Stockholders holding their shares electronically in book-entry form are not required to take any action to receive post-split shares. Pacific Stock Transfer will provide instructions to stockholders with physical certificates regarding the process for exchanging their pre-split stock certificates for book entry of the appropriate number of post-split shares. Stockholders owning shares through a bank, broker or other nominee will have their positions adjusted to reflect the reverse stock split in accordance with their respective bank’s, broker’s or nominee’s particular processes. Additional information regarding the reverse stock split is provided in the Company’s information statement to be filed with the Securities and Exchange Commission.
About Marijuana Company of America, Inc.
MCOA is a corporation that participates in (1) product research and development of legal hemp-based consumer products under the brand name “hempSMART™” and targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreational use; and (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About Our hempSMART Products Containing CBD
The United States Food and Drug Administration (FDA) has not recognized CBD as a safe and effective drug for any indication. Our products containing CBD derived from industrial hemp are not marketed or sold based upon claims that their use is safe and effective treatment for any medical condition as drugs or dietary supplements subject to the FDA’s jurisdiction.
Forward Looking Statements
This news release contains "forward-looking statements" that are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate," "seek," intend," "believe," "estimate," "expect," "project," "plan" or similar phrases that may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-12G, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
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Released July 3, 2019